NASHVILLE, Tenn. — Brookdale Senior Living Inc. (NYSE: BKD) has agreed to sell 44 of its seniors housing communities for a total sales price of $252.5 million. The buyer and specific properties were not disclosed.
The 12-state portfolio comprises 2,453 units, including 1,874 assisted living units and 579 memory care units. The communities’ revenue for the 12 months that ended March 31 was approximately $89 million, with an average occupancy of 79 percent for the first quarter of 2016.
Andy Smith, Brookdale’s president and CEO, says the divestment was part of a plan to “simplify our business model and divest communities that do not fit with our strategy.”
“This single transaction divests a diverse group of communities spread across 12 states and minimizes any operational disruption,” Smith continues. “We expect to use the proceeds of the transaction to primarily repay debt in another step towards de-leveraging the balance sheet.”
Brookdale expects to complete the transaction before the end of the year.
Brookdale is the largest owner and operator of seniors housing in the United States. The company’s stock price closed at $17.87 per share on Wednesday, July 27, down from $32.38 one year ago.